Mojo Power East collapses, NSW, Queensland and South Australia customer disconnected

Hundreds of customers were disconnected from the power grid in the middle of winter due to the collapse of their energy supplier.

The Australian Energy Regulator announced it had ‘initiated the Retailer of Last Resort process’ against Mojo Power East Pty Ltd on Wednesday night.

The process ensured the continued supply of power to more than 500 affected customers across NSW, Queensland and South Australia.

Affected customers were transferred to other energy suppliers, who will contact them directly to explain the new arrangements.

‘The AER applied the consumer safeguard after the company ceased the sale of energy to five local councils based in New South Wales,’ a regulator statement read.

‘This will ensure continuation of supply to essential services to Mojo Power East customers within these jurisdictions, including the affected local councils.’

Customers are not required to take any immediate action and are under no obligation to remain with their new retailer once they are transferred

Mojo Power, which also traded as People Energy warned last Friday that it would cut off supply within 72 hours.

The small retailer then directed Ausgrid to disconnect customers on Monday afternoon.

Established in 2015, Mojo Power bought most of its energy from the open market which included coal but collapsed as Australia’s ongoing energy crisis worsened.

Smaller suppliers have struggled to survive as the wholesale price of energy increased sixfold in the last year.

It comes weeks after millions of Australians were urged by authorities to limit their power use during peak morning and evening periods due to electricity supply shortfalls forecast.

Affected customers with concerns can contact the AER hotline on (02) 6243 3065.